Perhaps to the surprise of few but the concern of many, the T is facing gaping budget deficits in the coming years, according to agency projections shared at a public meeting Thursday morning.
The forecasts, more grim than those made last year because of underwhelming state appropriations, cast a dark fiscal cloud over an agency hoping to sustain its much-touted service improvements in the years to come.
Assuming the T receives the same level of assistance it got from the legislature this past budget cycle, the T expects to find itself in a $560 million budget hole in the 2027 fiscal year (starting July 1), and a $732 million pit the following year (after accounting for cost savings).
The T expects to end the current fiscal year, which wraps up June 30th, with a $239 million deficit. It plans to zero out using money from the agency’s rainy day fund.
The projections are much bleaker than budget estimations drawn up around this time last year. In a presentation last February, the agency said it anticipated a $216 million deficit in fiscal year 2027 and a $390 million deficit in fiscal year 2028 after factoring in anticipated cost savings.
The T traces the disparity to lower-than-expected financial assistance from the state.
The governor and the House had set aside $687 million for the MBTA during the last budget cycle, according to the agency. The final state budget, passed by both legislative chambers and signed by the governor, approved only $470 million, the T says.
This is a developing story and will be updated.
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